Stockholders' Equity | 8. Stockholders’ Equity Reverse Stock Split On July 6, 2015, the Company effected a one-for-two reverse stock split of its outstanding common stock, convertible preferred stock, stock options, warrants to purchase preferred stock and warrants to purchase common stock as approved by its Board of Directors. All information in this Quarterly Report on Form 10-Q relating to the number of shares, price per share and per share amounts have been adjusted to give effect to the one-for-two reverse stock split. Convertible Preferred Stock Upon the closing of the IPO on July 22, 2015, all of the Company's outstanding Series Alpha and Series Alpha-1 convertible preferred stock converted into 8,353,748 shares of common stock on a 1:1 basis and 241,469 shares of Series Beta preferred stock converted into 525,109 shares of common stock. Common Stock and Preferred Stock On July 6, 2015, the Company filed an amended and restated certificate of incorporation to increase the amount of common stock authorized for issuance to 100,000,000 shares with a par value of $0.0001 per share and 10,000,000 shares with a $0.0001 par value per share of preferred stock. As of October Equity Award Plans 2005 Stock Plan The Board of Directors adopted, and the stockholders approved, the Company’s 2005 Stock Plan (the “2005 Plan”) Plan was amended and restated in the form of the 2015 Equity Incentive Plan described below. The terms of the 2005 Plan as described in the Prospectus will continue to govern the terms and conditions of the outstanding awards previously granted thereunder. 2015 Equity Incentive Plan In June 2015, the Company amended and restated its 2005 Plan in the form of 2015 Equity Incentive Plan (the “2015 Plan”) which became effective immediately upon the effectiveness of the Company’s IPO. T he 2015 Plan provides for the grant of incentive stock options to its employees and any of its subsidiary corporations’ employees, and for the grant of non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, performance units and performance shares to its employees, directors and consultants and its subsidiary corporations’ employees and consultants. 5% of the outstanding shares of its common stock as of the last day of its immediately preceding fiscal year; and (ii) such other amount as the Company’s board of directors may determine. As of October Employee Stock Purchase Plan In conjunction with the completion of its IPO, the Company adopted the 2015 Employee Stock Purchase Plan (“ESPP”). The ESPP has 441,165 shares authorized for future issuance. The number of authorized shares under the ESPP is subject to increase on an annual basis. The ESPP allows eligible employees to purchase shares of common stock at a discount through payroll deductions of up to 15% of their eligible compensation subject to plan limitations. The ESPP provides for a 24-month offering period comprised of four purchase periods of approximately six months. Employees are able to purchase shares at 85% of the lower of the fair market value of the Company’s common stock (i) at the date of commencement of the offering period or (ii) at the last day of the purchase period. The offering periods are scheduled to start on the first trading day on or after March 15 and September 15 of each year, except for the first offering period, which commenced on the first trading day upon the completion of the Company’s IPO, or July 17, 2015, and ends on September 15, 2017. During the three months ended October 31, 2015, there was a purchase of 15,569 shares at a purchase price of $7.12 per share. On September 15, 2015 the Company started a new offering period at a new offering price based on the closing price of the Company’s common stock on the same date. The Company concluded that starting a new offering period prior to the completion of the existing offering period resulted in an accounting modification and accordingly, recorded $0.6 million of incremental compensation charge to be recognized over the remaining life of the ESPP offering period. During the three and nine months ended 31, 2015, the Company recorded stock-based compensation expense of $0.2 million and $0.2 million, respectively, related to the ESPP. Stock Options Options to purchase shares of common stock may be granted to employees, directors, and consultants. These options vest from date of grant to up to five years and expire 10 years from the date of grant. Options may be exercised anytime during their term in accordance with the vesting/exercise schedule specified in the recipient’s stock option agreement and in accordance with the plan provisions. Shares issued upon exercise prior to vesting, are subject to a right of repurchase, which lapses according to the original option vesting schedule. Summary of option activity under the Company’s 2005 Plan and 2015 Plan for the nine months ended October 31, 2015 is set forth below: Options Outstanding Number of Weighted Shares Weighted Average Aggregate Underlying Average Remaining Intrinsic Outstanding Exercise Contractual Term Value Options Price (Years) (in thousands) Balance, January 31, 2015 1,893,239 $ 3.85 8.40 $ 10,109 Options granted 443,517 12.36 Options exercised (60,127 ) 0.43 Options canceled (87,328 ) 5.61 Balance, October 31, 2015 2,189,301 5.60 8.05 $ 7,240 Vested and exercisable, October 31, 2015 636,197 $ 1.31 5.25 $ 4,419 Vested and expected to vest, October 31, 2015 1,990,744 $ 5.52 7.96 $ 6,743 Aggregate intrinsic value represents the difference between the exercise price of the options to purchase common stock and the fair market value of the Company’s common stock. The aggregate intrinsic value of options exercised for the three months ended 31, 2015 and 2014 was $0.2 million and $7,000, respectively, and $0.8 million and $0.4 million for the nine months ended 31, 2015 and 2014, respectively. Restricted Stock Units Restricted Stock Units (RSUs) were granted to employees, non-employee board members and consultants. These RSUs are subject to a time-based vesting condition, which ranges from one to four years. A summary of the Company’s RSU activity and related information for the nine months ended October 31, 2015 is as follows: Number of Shares WeightedAverage Grant-Date Fair Value Per Share WeightedAverage Remaining Contractual Life (Years) Aggregate Intrinsic Value (in thousands) Balance as of January 31, 2015 — $ — — $ — RSUs granted 987,355 10.04 RSUs vested — — RSUs canceled (38,700 ) 10.91 Balance as of October 31, 2015 948,655 $ 10.00 2.32 $ 7,646 Vested and expected to vest - October 31, 2015 901,222 $ 9.04 2.17 $ 7,396 Common Stock Warrants A summary of the Company’s warrants to purchase common stock activity and related information for the nine months ended October 31, 2015 is as follows: Common Warrants Outstanding Balance, January 31, 2015 87,828 Add: Conversion of Preferred Series Alpha warrants to common warrants on IPO 87,325 Less: Common warrants exercised to common stock (9,152 ) Less: Common warrants terminated (2,046 ) Balance, October 31, 2015 163,955 These warrants have exercise prices ranging from $4.70 to $6.04 per share and have expiration dates through January 2025. |